The market has become volatile in recent years, which has had an impact
on mining deals. There has been a significant decline in the number of
merger and acquisition deals in the Mining sector, which is hampering
the consolidation and growth of the market. As some companies took
advantage of the lower cost of borrowing to purchase assets, the number
of deals across the global Mining sector declined in the first half of
2013. Some of the major players have continued to finance their
operations, many projects have been deferred, and capital spending has
been curbed by many mining companies.

According to the report, one of the major drivers in this market is the
increasing demand for metals with respect to the increasing investment
in the Power sector, especially in China. The growth in the Global
Mining Finance market is attributed to the increasing population and
industrialization in China and the consequent demand for metals.

Further, the report states that one of the main challenges in this
market is the bank de-leveraging due to the recent financial meltdown.
As fallout of the recent Euro crisis and the US economic crisis, there
have been some significant structural changes in the credit market. This
has resulted in the reduction of borrowing from banks.